El Dorado Hills, CA Bankruptcy Lawyers

Few words strike as much fear in people’s hearts like the way that the infamous “B” word – bankruptcy – does. However, bankruptcy is simply a legal process that can actually lead you to financial freedom when you’re up to your head in debt! Whether your vehicle is in jeopardy of being repossessed, you’re facing a possible eviction or foreclosure, or you’re sick of being harassed by creditors, the seasoned El Dorado Hills bankruptcy lawyers at Equal Justice Law Group can help. We can put an immediate stop to debt collecting actions, and simplify the bankruptcy process so that you can have a fresh start. Call today to schedule a free consultation. 

What Is Bankruptcy?

Bankruptcy is a legal process that is initiated when a person (or a business) is unable to repay their debts. In some cases, the debt is rearranged so that it can be repaid through a payment plan, and in others it erases the debt completely, providing a clean slate. Bankruptcy can also help reverse some of the negative consequences that are associated with debt, like putting a stop to creditor harassment, which is also known as an automatic stay. An automatic stay goes into effect the moment you file for bankruptcy, and it prevents creditors or debt collectors from texting, calling, emailing you, or contacting you in any other way. Additionally, any processes that have already begun, like evictions, repossessions, foreclosures, and more, must come to an immediate halt once bankruptcy has been filed. If collectors continue to contact you, they can face serious fines or penalties. Having a seasoned bankruptcy attorney on your side can help ensure this doesn’t happen. 

What Are The Different Types Of Bankruptcy?

There are several different types of bankruptcy, but the most common are Chapter 7, Chapter 11, and Chapter 13. Chapter 11 is primarily used by business owners, and Chapters 7 and 13 are primarily used by individuals or married debtors. 

Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows debtors to keep up to a certain value of assets, including vehicles, property, household items, and more. If the value of these items exceeds the federal or state’s allowed amount, the debtor(s) can agree to pay the excess amount, or give up their property or items to the bankruptcy trustee. It’s important to note that oftentimes Chapter 7 bankruptcy doesn’t result in you giving up your belongings. 

Chapter 13 bankruptcy is also known as reorganization bankruptcy or a wage-earners bankruptcy. It involves a 3-5 year repayment plan for debts, and is intended for those who are currently earning income. With Chapter 13 bankruptcy, debtors don’t have to give up their property, but they do have to make monthly payments towards their total debt amount. The payments go to the bankruptcy trustee and are then distributed to the appropriate creditors. 

Both Chapter 7 and Chapter 13 can provide you with the opportunity to wipe out your debt and start over, and neither will ruin your credit score. In fact, bankruptcy can actually lower your debt to income ratio, improving your credit score. 

How Our El Dorado Hills Bankruptcy Lawyers Can Help You

At Equal Justice Law Group, we understand how overwhelming growing debt can be. We can help take the burden off of your shoulders by evaluating your situation and explaining which bankruptcy option will best fit your needs. Our El Dorado Hills bankruptcy lawyers will stand by your side through each step of the process so that you can have peace of mind. Call now to schedule a free, no-obligation consultation to learn about what’s next.